Mining

Toubani Resources confirms Kobada Gold Project as major asset

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Toubani Resources (ASX:TRE) has released the results of its definitive feasibility study for the Kobada Gold Project in southern Mali.

The definitive feasibility study confirms Kobada as a significant gold asset, highlighting its potential for high-margin oxide production.

The study positions the project as a +150,000oz per annum producer at one of the lowest capital intensities in the sector.

Financial metrics indicate a post-tax net present value of US$635 million ($966.5 million) and an internal rate of return of 58% at a gold price of US$2,200 ($3,349)/oz.

The NPV increases to US$897 million ($1.37 billion) with an IRR of 73% at US$2,600 ($3,957)/oz, reflecting significant upside at current gold prices.

The initial development capital is set at US$216 million ($5.7 million).

Phil Russo, Managing Director of Toubani, stated, "The strategy to update the Kobada feasibility study was driven by our belief that the Kobada Gold Project is a unique and rare development asset that had yet to reveal its true potential."

The definitive feasibility study estimates total ore reserves at 53.8 million tonnes, with an average production of 162,000oz per annum over the mine's life.

The project aims to enhance, grow, and derisk the operation, with ongoing resource drilling and studies planned.

Toubani Resources is in ongoing discussions with the State of Mali regarding Kobada's Mining Convention, projecting a shovel-ready status by 2025, supported by a robust cash position of $10.5 million.

At the time of reporting, Toubani Resources' share price was $0.32.

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